Key takeaways
- Deregistration is mandatory when you stop making taxable supplies or fall below AED 187,500 over 12 months.
- Below the AED 375,000 mandatory threshold you may apply, unless you registered voluntarily under 12 months ago.
- Apply within 20 business days of the trigger, the deadline in the Executive Regulation; the FTA's service page says 30.
- A late application is penalised AED 1,000, then AED 1,000 on the same date each month, up to AED 10,000.
- The application is free, and the final return and payment are due within 28 days of the effective date.
Mandatory or voluntary: which applies to you
The VAT law, Federal Decree-Law No. 8 of 2017, has two cases: Article 21 says when you must apply, and Article 22 says when you may.
| Your situation | Type | Basis |
|---|---|---|
| You stop making taxable supplies, for example the license is cancelled or sold | Mandatory | Article 21 |
| Taxable supplies over 12 consecutive months are below AED 187,500, and you don't expect to pass it in the next 30 days | Mandatory | Article 21 |
| Taxable supplies over the past 12 months are below AED 375,000. If you registered voluntarily, you can't apply to deregister within 12 months of your registration date (Article 23). | Voluntary: you may apply | Articles 22 and 23 |
| Duplicate TRN, a separately registered branch, or several sole establishments | Other grounds on EmaraTax | FTA service page |
The FTA can also deregister you itself if you meet the conditions but haven't applied, or if keeping the registration would harm the tax system's integrity (Executive Regulation, Articles 14 and 14 bis). If your taxable supplies later exceed AED 375,000, you must register again; above AED 187,500 you may. See registering for VAT as a small business.
Deadline and late deregistration penalty
Article 14(1) of the Executive Regulation (Cabinet Decision No. 52 of 2017, as amended by Cabinet Decision No. 100 of 2024) gives 20 business days from the event that triggers deregistration. The FTA's deregistration page, updated 24 September 2026, states 30 business days. Applying within 20 business days of the trigger, such as the date you stopped making taxable supplies, which is often earlier than the license cancellation date, keeps you inside both.
| Violation | Penalty at the time of writing |
|---|---|
| Late deregistration application | AED 1,000, then AED 1,000 on the same date each month, up to AED 10,000 |
| Late VAT return, including the final return | AED 1,000 the first time; AED 2,000 if repeated within 24 months |
| Late payment of tax due | 14% a year, charged monthly on the unpaid amount from the day after the due date |
How to deregister for VAT on EmaraTax
- 1. Confirm your ground and date. EmaraTax fills in the effective date from the date your ground arose; you can change it with a reason.
- 2. Clear the account. File any overdue returns and pay outstanding tax and penalties. The FTA won't deregister you until everything is filed and paid.
- 3. Start the application. Open your taxable person account, then on the VAT tile click Actions and choose De-Register.
- 4. Enter supplies and expenses. Use the FTA's Taxable Supplies and Taxable Expenses templates, in AED, and upload the documents for your ground.
- 5. Submit and wait for pre-approval. The FTA pre-approves or rejects the application and may ask for more documents.
- 6. File the final return and pay within 28 days of the effective date. The digital deregistration certificate then appears in EmaraTax.
The service is free. The FTA lists 30 business days to process a complete application, plus up to 30 more after you send extra documents.
Documents the FTA asks for
| Ground | Typical documents |
|---|---|
| License cancelled | Cancellation certificate, liquidation letter and board resolution; financial turnover template |
| License sold | Sale contract; amended trade license; financial turnover template |
| Below AED 187,500 | Turnover template; dated, stamped letter on letterhead that you won't pass the threshold in the next 30 days |
| Between AED 187,500 and AED 375,000 | Turnover template; signed, stamped declaration that you won't pass the threshold in the next 30 days |
| Exempt or out-of-scope supplies | Chart of your business flow, suppliers, importers and customers' and suppliers' countries |
A sole establishment also adds a declaration by the owner.
Effective date, final return and why applications stall
Mandatory deregistration normally takes effect from the last day of the tax period in which you met the conditions; a voluntary one from the date you asked for or applied. Assets you still hold are treated as supplied just before deregistration, so VAT on them goes in the final return, and tax or penalties from your registered period stay payable. Common reasons an application stalls:
- Returns still unfiled, or tax and penalties unpaid.
- Documents that don't support the figures entered, which the FTA's manual links to rejection or resubmission.
- Missing turnover templates or the 30-day threshold declaration.
- Still registered in the Tourist Refund System: the application isn't fully processed until you leave it.
- A credit balance on the account, which needs a separate refund request on EmaraTax.
Corporate tax is a separate deregistration
Closing your VAT registration doesn't close your corporate tax registration. That's a separate, free EmaraTax application, with the license cancellation document and financial statements up to that date; the FTA lists 40 working days to process it. Closing the company? See how to cancel a trade license in Dubai.
Global Sky PRO isn't a registered tax agent and doesn't give tax advice. We review your EmaraTax account for gaps, prepare the deregistration application and documents, track the application on EmaraTax with you and help you answer FTA requests for documents, working with your accountant or a registered tax agent where needed. See our FTA services.
Sources
- Federal Tax Authority: VAT deregistration
- Federal Tax Authority: registration for VAT
- Federal Tax Authority: VAT deregistration taxpayer user manual
- UAE Ministry of Justice: Federal Decree-Law No. 8 of 2017 on Value Added Tax
- Federal Tax Authority: Executive Regulation of the VAT Decree-Law and its amendments
- Ministry of Finance: Cabinet Decision No. 40 of 2017 on administrative penalties and its amendments
- Federal Tax Authority: corporate tax deregistration
Official sources checked on 9 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.